Can Financial Managers Work from Home?

We have talked before about the many benefits of hiring accounting and finance talent through offshore staffing solutions, but what about high-level management positions? Is it possible to delegate decision-maker roles to someone miles away?

The short answer is: of course. With cloud-based software and online management tools, everyone can work from anywhere at any time. Still, some firms are reluctant to consider top professionals like Financial Managers on a remote arrangement. 

In an age where remote work is redefining the very essence of the workplace, the idea of hiring a financial manager remotely isn't just a novelty—it's a strategic move that can transform how accounting firms and businesses handle their financial affairs. This article is all about exploring the why, the how, and the what-ifs of hiring financial managers from afar.

Now, let's start with the "why." Why should you even consider hiring a financial manager remotely? Well, the most obvious answer is the promise of cost savings. So, yes, money. There are obviously more reasons to offshoring than just costs, but it is an undeniable truth that hiring a financial manager from a more cost-effective location can be a savvy financial move for your organization. 

But here's the kicker: while the benefits of remote financial management are clear, biases and misconceptions can sometimes throw a wrench in the gears of progress. There are often doubts and hesitations when it comes to entrusting high-level managerial roles to someone working far away. We'll shed light on these biases

The Role of Financial Managers Today

We all know that financial managers play a pivotal role in organizations of all sizes, including small businesses. They are responsible for ensuring the financial health of a company by making strategic decisions, managing investments, and maintaining accurate financial records. 

According to data from the Bureau of Labor Statistics, there were over 697,900 financial managers employed in the United States in 2020, with a median annual wage of $134,180. 

Three Basic Functions of Financial Managers

Financial Planning

The first fundamental function of financial managers is financial planning. This involves setting financial goals and developing strategies to achieve them. Financial managers analyze data, assess risks, and create comprehensive plans that align with the company’s objectives. They also ensure that the organization has access to the necessary funds to implement these plans.

Budgeting and Forecasting

Once the financial plans are in place, financial managers are tasked with budgeting and forecasting. They create detailed budgets that allocate resources efficiently and establish benchmarks for tracking progress. Forecasting involves predicting future financial trends and challenges, enabling proactive decision-making.

Risk Management

Financial managers are responsible for identifying and mitigating financial risks. This includes managing investments, optimizing capital structure, and implementing risk management strategies to protect the organization’s assets. They must stay informed about market fluctuations and economic conditions to make informed decisions.

Now, these professionals are essential for steering the financial ship of any organization but not all companies can access that kind of budget. So, with these functions in mind, let’s explore how financial managers can effectively carry out their responsibilities on a more flexible arrangement while working from home.

Managing Financial Functions from Home

The transition to remote work has been accelerated by technological advancements and the global shift towards digitalization. Financial managers can leverage various tools and strategies to perform their duties effectively from a remote location. Here’s how they can manage the three basic functions from home:

Financial Planning from Home

Data Analysis and Software: Financial managers can access financial data remotely through secure online systems. Advanced financial software and data analytics tools allow them to analyze historical data, market trends, and forecasts, all from the comfort of their home office. Some examples of such tools are Tableau, Microsoft Power BI, and Qlik Sense.

Virtual Meetings: Collaboration is key in financial planning. Video conferencing platforms like Zoom and Microsoft Teams facilitate virtual meetings with team members, executives, and stakeholders, ensuring that everyone is aligned on financial goals and strategies.

Secure Data Management: Ensuring data security is paramount. Financial managers can use secure cloud storage and encryption to protect sensitive financial information, reducing the risk of data breaches. Some examples of such services are Dropbox, Google Drive, and Box.

Budgeting and Forecasting from Home

Cloud-Based Financial Planning Software: Cloud-based budgeting and forecasting software allows financial managers to create and update budgets easily and quickly, as well as generate reports and dashboards that provide insights into performance. Some examples of such software are Centage, IBM Planning Analytics, and Solver CPM.

Scenario Planning: Scenario planning is a technique that helps financial managers prepare for various possible outcomes by creating alternative scenarios based on different assumptions. This helps them assess the impact of each scenario on the budget and forecast, as well as identify potential opportunities and threats. Some examples of tools that support scenario planning are SAP Analytics Cloud, Oracle EPM Cloud, and Adaptive Insights.

Communication Tools: Communication is vital for budgeting and forecasting, as it helps financial managers share information, solicit feedback, and resolve issues with relevant parties. Communication tools such as email, instant messaging, chatbots, and social media platforms help them stay connected and informed while working remotely. The most popular are Slack and Microsoft Teams. 

Risk Management from Home

Risk Management Tools & Techniques: Risk management tools and techniques help financial managers identify, assess, manage, and monitor risks in a systematic way. Some common tools and techniques are risk register, root cause analysis, SWOT analysis, risk assessment template, probability and impact matrix, risk data quality assessment, brainstorming, etc.

Risk Management Software: Risk management software helps financial managers automate and streamline the risk management process, as well as provide real-time data and analytics to support decision-making. Some examples of risk management software are Riskalyze, LogicManager, and [Resolver].

Risk Management Training: Risk management training helps financial managers enhance their knowledge and skills in risk management, as well as stay updated on the latest trends and best practices. Online courses, webinars, podcasts, and blogs are some of the sources of risk management training that can be accessed from home.

Remote Financial Management for Small Businesses

The discussion on remote financial management isn't limited to large corporations. Small businesses, in particular, can benefit significantly from hiring remote financial managers. Here are a few reasons why:

Cost-Effective: Small businesses often have limited budgets. Hiring a remote financial manager can be more cost-effective than maintaining a full-time in-house position. It allows businesses to access top talent without the overhead costs of office space and equipment.

Global Talent Pool: Going remote opens the door to a global talent pool. Small businesses can hire financial managers with specific expertise, even if they're located in different countries, to meet their unique financial needs.

Flexibility: Remote financial managers offer flexibility. They can adjust their schedules to align with the business's demands, making them more adaptable to dynamic environments.

Scalability: As businesses grow, their financial needs evolve. Remote financial managers can scale their services up or down as required, providing cost-efficient solutions to support business growth.

Bottom Line

Financial managers can work from home effectively by using various tools and strategies to perform their three basic functions: financial planning, budgeting and forecasting, and risk management. These functions are essential for ensuring the financial health and success of any organization. By working remotely, financial managers can enjoy the benefits of flexibility, productivity, and cost savings, while also overcoming the challenges of communication, collaboration, and data security.